Wealth tax in Catalonia

The property tax is a direct and personal tax, which affects/ falls natural persons’ wealth.
This tax is partially or completely transferred to the Autonomous Communities, so they have, over the estate regulation, competencies in order to improve deductions and tax allowances envisaged.

In this article, we will explain to you better what is the wealth tax and, in particular, we will focus on Catalonia.

Wealth tax in 2017

Wealth tax, unlike other taxes such as inheritance tax, is a tax with a temporary character. In 2008, Zapatero eliminated this tax as a message that the Spain economy was very well, but with the economic crisis, the tax was recovered. At first, the wealth tax had only to prolong for 2 years but, we are in 2017 and people have still declared the wealth that they have because it represents a collection of 1.300 million euros and for now, Autonomous Communities can not dispense.

There will be no fiscal news on wealth tax in 2017. Taxpayers have to submit the tax during the income campaign using form 714.

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Who has to submit the wealth tax?

The fact that marks if a person has to declare or not this tax is your wealth income. In most Autonomous Communities incomes equal or over 700.000 euros gross per year.

Spanish taxpayers have to submit real estate and rights, whether they are located in Spain or not. However, non-residents have only been taxed for rights located in Spain.

Wealth tax in Catalonia

Catalonia doesn’t apply for any allowance on the fee. This affects the minimum exemption of the community, which in Catalonia is 500.000 euros gross per year instead 700.000 euros gross per year from the other Autonomous Communities. This way, Catalan taxpayers are the majority, followed by a large distance from Valencia (17.786) and Andalusia (16.221).

In the case of the Community of Madrid, for example, the government offers an automatic bonus of 100%, reducing to 0 the number of taxpayers of the heritage tax.

If you are Catalan or from the other Autonomous Community and you need to solve some questions about wealth tax, we encourage you to contact our tax advisors in Barcelona. We will offer you an expert, individualized and confidential tax consultancy in order to declare the wealth tax correctly.

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